HOLSIN(SH:603909) KAIYUAN SECURITIES·2025-08-20 07:01Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company has reported significant year-on-year growth in revenue and net profit for the first half of 2025, with a notable increase in engineering construction orders [6][7] - The overall business performance remains stable, and the improvement in performance is better than expected, leading to an upward revision of profit forecasts for 2025-2027 [6] - The company is expected to benefit from synergies with its controlling shareholder, which may drive continuous revenue growth [6] Financial Performance Summary - In the first half of 2025, the company achieved total revenue of 3.393 billion yuan, a year-on-year increase of 7.67%, and a net profit attributable to shareholders of 45 million yuan, up 32.33% year-on-year [7] - The company’s gross profit margin was 4.99%, and the net profit margin was 1.61%, with respective year-on-year changes of -0.11 percentage points and +0.15 percentage points [7] - The operating cash flow turned positive, with a net cash flow from operating activities of 52 million yuan, attributed to increased construction business scale and improved collections [7] Business Segment Analysis - The engineering consulting business saw a slight revenue decline of 0.74%, generating 285 million yuan, while the engineering construction business reported a revenue increase of 8.55%, totaling 3.107 billion yuan [8] - The company signed new contracts worth 5.050 billion yuan in the first half of 2025, a 48% increase year-on-year, with the engineering construction segment accounting for 4.593 billion yuan, reflecting a substantial growth of 56% [8] - The growth in engineering construction orders is primarily driven by the aggressive expansion of land reserves by the controlling shareholder, which has effectively boosted related business demand [8] Financial Forecasts - The company’s projected net profit for 2025-2027 is revised to 120 million, 150 million, and 170 million yuan respectively, with corresponding EPS estimates of 0.5, 0.6, and 0.6 yuan [6] - The current price-to-earnings (P/E) ratios for 2025-2027 are estimated at 22.0, 17.9, and 15.8 times [6] - Revenue forecasts for 2025-2027 are set at 8.048 billion, 9.519 billion, and 11.300 billion yuan, with year-on-year growth rates of 21.8%, 18.3%, and 18.7% respectively [9]